Corn Sitting in Black into Day Trade

Corn futures are sitting about midrange after seeing a 6 cent range overnight from -2 to +4. The board is up 1 to 2 1/2 cents currently for early Wednesday trading. Corn was down by 1.8% to 2.5% on Tuesday and closed near the lows for the day. Futures were down by double digits out through the July ’24 contract.  Preliminary open interest showed long liquidation in the September contract and net new selling for the rest, rising 12,664 contracts overall. 

The Chinese yuan fell sharply after an emergency meeting of the central bank decided to cut rates a full 1.0% to stimulate the economy. The USD/CNY was similar to October of last year at 7.28:1, both of which are the strongest dollar (/weakest yuan) since 2008. Dalian Corn Prices  have slipped some, but remain mostly firm on the board near 2,622 yuan/MT after the rally last week. The catch is the $/bu conversion is back to the low of the month given the currency drop. 

Barchart’s updated cmdtyView Corn Yield was lowered 0.46 bpa to 177.9. That is still 4.8 bpa above the USDA, though production remains 124 mbu lighter at 14.987 bbu. At the state level: they trimmed IA 0.8 to 196.5 (USDA @ 203), lifted IL 0.31 to 193.4 bpa (201), left NE at 189 (184), and see MO at 155 (143).

Sep 23 Corn  closed at $4.64, down 11 3/4 cents, currently up 2 1/2 cents 

Nearby Cash   was $5.04, down 10 3/4 cents,

Dec 23 Corn  closed at $4.75 1/2, down 12 1/4 cents, currently up 2 1/2 cents

Mar 24 Corn  closed at $4.89 1/4, down 12 1/4 cents, currently up 2 1/4 cents